84 -FUNDAMENTAL EQUATIONS OF A PESEl coste del sistema puede ser dividido en dos conceptos:a) Costes anualesAnnual Opportunity Cost (AOC) incurred by the providers of the good or service in modifying their use of the resource at stake.Annual Execution Cost (AEC). This refers to the administration and operating expenses necessary for the performance and operation of the environmental service.b) Initial fixed costsSetup Costs (SC), the costs of the necessary activities plus expenses for system organization.Environmental Conservation and Improvement Costs (ECIC), the costs of programs oriented towards environmental protection, conservation and improvement.In addition, there are measures for sustainable local development (LDC)—education, raising of awareness, etc.— that will make it possible to improve the system of supply and demand.(WTPannual *no of demanders)m + (OI)m ≥ AOCm +AECm + SCm + ECICm +LDCmI = Other incomeIf a credit (included in OI) is asked, then this analysis must be done considering time:CD = credit devolution

185.- RESULTADOSIdentification of providers and performance of a socioeconomic study of the Basin.Physical mapping, previous physical planning study, and preparation of a rural development plan.Estudio hidrológico. Balance de la demanda y oferta del agua.Identification of the demanders of the water resource, and study of their Willingness to Pay (WTP) by using CVM.Physical planning of the basin areas most relevant to the conservation of the water resource.Valuation of the cost of the measures necessary to provide the quantity of water required under proper conditions.(g) Study of the legal structures to be used.

195.- RESULTS(d) Identificación de lo demandantes del recurso hídrico y estudio de la disposición al pago o DAP mediante valoración contingente.Physical planning of the basin areas most relevant to the conservation of the water resource.Valuation of the cost of the measures necessary to provide the quantity of water required under proper conditions.(g) Study of the legal structures to be used.

225.- RESULTS ¿Qué hacer en estar áreas?(e) Planificación física de las áreas más relevantes para la conservación del recurso hídrico.¿Qué hacer en estar áreas?“Priority action areas” under the PES system:Maximum protection zones, highest risk to water quality conservation.Area to be reforested: 28.28 ha. of coffee-producing fields, and ha. of agricultural productionTerritories corresponding to agricultural-production and soil-protection were defined as “areas in conflict” when the following conditions were met:Agricultural activity being conducted on slopes steeper than 30%, with the consequent exposure of the slopes to strong erosion.Existence of unshaded coffee plantations (those without forest cover).

235.- RESULTADOSValoracion del coste de las medidas necesarias para dotar la cantidad de agua requerida en las condiciones adecuadas.Annual Opportunity Cost (AOC) was estimated in two different manners:Land located in priority areas. The proposal involves changing to non-productive forestry. The opportunity cost was therefore estimated at one hundred percent of the current production generated by these territories.Land located in conflict areas. It was proposed a change in the production system+ Annual Execution Cost (AEC)+ Environmental Conservation and Improvement Costs (ECIC)+ Set up costs (SC)+ Rural development measures

25Coste de oportunidad de las áreas en conflictoUnshaded coffee farms. The opportunity cost was estimated either at thirty percent of current production or as the estimated decrease in the productivity and profitability of the pieces of land in question.Agricultural farms agreeing to undertake a change in their production system that would involve an increase in production, it was estimated that there would be no opportunity cost.

33Model Digital ElevationDuring early 1994, the El Cajon hydro-electric dam reduced its operation due to high sedimentation rates and a severe drought that affected this area. The resulting power shortages cost $20 million each month in loss of industrial production.¿Qué queda por valorar?Slop mapOrganization by land covers and level of rain of the erosion results (ton/ha)Map combinationLand cover mapModel Digital ElevationSoil Type mapGeology mapSoilLand coverSlopeRainfallReclassification according to the risk level (high, medium, moderate and low)Reclassification according to the erosion risk level (high, medium, moderate and low)Soil erosion risk